Alabama HB206 allows trustees to adjust trust receipts and disbursements between principal and income without requiring the trust terms to authorize.

Alabama HB206 amends the Alabama Principal and Income Act to permit trustees to adjust trust receipts and disbursements between principal and income without needing explicit authorization from the trust terms. This change aligns current law with the Uniform Principal and Income Act. The bill also includes nonsubstantive, technical revisions to update the existing code language to current style. Trustees must consider various factors when deciding whether to exercise the power to make adjustments, such as the nature of the trust, the intent of the settlor, and the needs for liquidity.

Alabama HB206 allows trustees to adjust trust receipts and disbursements between principal and income without requiring the trust terms to authorize.

Alabama HB206 amends the Alabama Principal and Income Act to permit trustees to adjust trust receipts and disbursements between principal and income without needing explicit authorization from the trust terms. This change aligns current law with the Uniform Principal and Income Act. The bill also includes nonsubstantive, technical revisions to update the existing code language to current style. Trustees must consider various factors when deciding whether to exercise the power to make adjustments, such as the nature of the trust, the intent of the settlor, and the needs for liquidity.